Access Bank Eyes Increased Investment in Ghana, Rwanda, Zambia

By Obinna Chima

Access Bank Plc has disclosed plans to increase its presence in Ghana, Zambia and Rwanda in the next three years.

The bank’s Chief Financial Officer, Mr. Seyi Kumapayi said this during a presentation to journalists in Lagos.

Access Bank will seek shareholders' approval this month to raise additional equity capital of up to N68 billion through a rights issue. The bank had in a notice for an extraordinary general meeting expected to hold in Lagos, also said with shareholders' approval, the rights issue might be underwritten on terms to be determined by its directors, subject to obtaining approvals from the relevant regulatory authorities.

The bank will also seek shareholders' approval that its authorised share capital be increased from N13 billion, made up of 24 billion ordinary shares of 50 kobo each and two billion preference shares of 50 kobo each, to N20 billion by the creation of 14 billion ordinary shares of 50 kobo each.

To this end, Kumapayi explained that part of the fund to be raised would be used to drive the anticipated business expansion.

“Today, there are some countries we have identified in terms of where we see growth opportunities. These countries are Ghana, Zambia and Rwanda.

“For these countries, just as we see growth opportunities in Nigeria, over the next two or three years, we are going to increase our investments in them to take care of the opportunities we see their,” he added.

Kumapayi also said part of the funds would be used for branch expansion, renovation and facilities’ upgrade in Nigeria.

According to him, Access Bank also intends to set up electronic branches to support its retail banking services.

“We are going to replace some of our obsolete infrastructures so that we would be able to compete. We are replacing some of our ATMs that have worn out their useful life and we are going to enhance our IT infrastructures to serve our customers in a much better and conducive manner. We need to increase our working capital,” he added.

Access Bank is listed on the stock exchange of three countries namely Nigeria, Ireland and London.

The bank has about 360 branches and over 1,000 ATMs. Access Bank is firmly entrenched as a tier-1 bank and among the top five banks in Nigeria.

Access Bank Plc early this year, issued a $400 million seven-year tier-2 capital issuance, which is callable at the end of five years. The bank is rated BB- (Standard & Poor's) and B by Fitch Ratings.

Culled from http://www.thisdaylive.com